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Analysis of the Correlation between Fixed Assets Investments and Company Efficiency in Pharmaceutical Industry
Is there a positive correlation between fixed assets investments and technical efficiency of the firm? Are firms with the higher levels of investments more technological progressive? This paper proposes stochastic frontier analysis (SFA) with the information of Russian companies in the pharmaceutical industry from 2011 to 2015. The results show that firms that have high levels of fixed assets investments are more technically efficient.